Tesla is in the process of seeking certification for 2 EV models in the Indian market.

Tesla, one of the largest EV manufacturers in the world, has started the process for the certification for its two electric cars in India, which is a mandatory requirement to sell the car on Indian roads. The local unit of Musk's firm Tesla India Motor & Energy Pvt. Ltd. submitted two new applications for homologation of Model Y and Model 3 cars in India. 

What is Homologation?

Homologation is a process of certifying that a particular car is fit for the roads and meets all the requirements of all the vehicles manufactured in India or imported into the country. 

This test is useful to ensure that the car matches all the requirements of the Central Motor Vehicle Rules, in terms of emissions, safety and reliability. 

The company has applied seven applications for homologation in India, which applies for the test cars, however the eighth application has been approved recently. 

This is possible because of the India US talks on the free agreement policy, under which tariffs will be significantly reduced by both the countries, in order to enhance the economy and bilateral trade. 

As per these strategic moves, it is clearly evident that Musk is keen to enter India which is the world’s third-largest car market, however the Indian Government is also keen for Musk to set up their plant in India to locally manufacture the Tesla cars, however he has clearly stated that they will be exporting the cars to the country, and has no plans for manufacturing as of now. 

According to the Federation of Automobile Dealers Association (FADA), the retail sales of electric passenger vehicles in India has witnessed the growth of nearly 20%, as the EV market is growing, the expected compound annual growth rate (CAGR) is predicted to be 43%, with Tata Motors and JSW MG Motors, currently the leaders in the EV space. 

There is a huge contribution of Government subsidies and initiatives under the PM E-Drive scheme, to the growth of EV sales in India, as the country is transitioning to EV mobility, in order to promote sustainability and green energy.